Organizational Behaviour
2nd European Edition
Chapter 3
Organizational
Culture
Organizational Culture Is
‘The set of shared, taken-for-granted
implicit assumptions that a group holds
and that determines how it perceives,
thinks about and reacts to its various
environments.’
- Edgar Schein
A Typology of Organizational
Values
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Elite
Equitable
Meritocractic
Endorsed
Values
Discouraged Endorsed
Values
Values
Discouraged
Values
Authority
Performance
rewards
Teamwork
Participation
Commitment
Affiliation
Authority
Performance
rewards
Teamwork
Participation
Commitment
Affiliation
A Typology of Organizational
Values (continued)
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Leadership
Egalitarian
Collegial
Endorsed
Values
Discouraged Endorsed
Values
Values
Discouraged
Values
Authority
Performance
rewards
Teamwork
Commitment
Affiliation
Participation Teamwork
Participation
Commitment
Affiliation
Authority
Performance
rewards
A Model for Observing and Interpreting
General Manifestations of Organizational Culture
Culture
• Important
shared
understandings
Interpret
• Infer meanings
Objects
• Shared things
Talk
• Shared sayings
Generate
Behaviour
• Shared doings
Emotion
• Shared feelings
Source: ‘Implications of Corporate Culture: A Manager’s Guide to Action,’ by Vijay Sathe.
Receive
• Ask
• Observe
• Read
• Feel
Four Functions of Organizational Culture
Organizational
identity
Sense-making
device
Organizational
culture
Social system
stability
Collective
commitment
Types of Organizational Culture
Type of
Culture
Normative
Belief
Characteristics
Constructive
Achievement
Goal and achievement oriented
Constructive
Self-actualizing Value self-development
and creativity
Constructive
Humanisticencouraging
Participative, employee
centred and supportive
Constructive
Affiliative
High priority on constructive
interpersonal relationships, and
focus on work group
satisfaction
Types of Organizational Culture (continued)
Type of
Culture
Normative
Belief
Characteristics
PassiveDefensive
Approval
Avoid conflict, strive to be liked
by others and approval oriented
PassiveDefensive
Conventional
Conservative, bureaucratic and
people follow the rules
PassiveDefensive
Dependent
Non-participative, centralized
decision making and employees
do what they are told
PassiveDefensive
Avoidance
Negative reward system and
avoid accountability
Type of
Culture
Normative
Belief
AggressiveDefensive
AggressiveDefensive
Oppositional
AggressiveDefensive
Competitive
AggressiveDefensive
Perfectionistic
Power
Characteristics
Confrontation and negativism
rewarded
Non-participative, take charge of
subordinates and responsive to
superiors
Winning is values and a win-lose
approach is used
Perfectionistic, persistent and
hard working
Developing an Adaptive Culture
Early business leaders create and implement a business vision
and strategy that fits the business environment well.
Firm succeeds.
Business leaders emphasize the importance of
constituencies and leadership in creating the success.
A strong culture emerges with a core that emphasizes service to customers,
stockholders and employees, as well as the importance of leadership.
Subsequent top managers work to preserve the
adaptive core of the culture.
They demonstrate greater commitment to its
basic principles than any specific business
strategy or practice.
Embedding Organizational Culture






Formal statements of organizational philosophy, mission,
vision, values and materials used for recruiting, selection
and socialization
The design of physical space, work environments and
buildings
Slogans, language, acronyms and sayings
Deliberate role modelling, training programmes, teaching
and coaching by managers and supervisors
Explicit rewards, status symbols (e.g. titles) and promotion
criteria
Stories, legends and myths about key people and events
Embedding Organizational Culture
(continued)





The organizational activities, processes or outcomes that
leaders pay attention to, measure and control
Leader reactions to critical incidents and organizational
crises
The workflow and organizational structure
Organizational systems and procedures
Organizational goals and the associated criteria used for
recruitment, selection, development, promotion, lay-offs
and retirement of people
A Model of Organizational
Socialization
Phases
1. Anticipatory
socialization
Learning that occurs
prior to joining the
organization
Perceptual and Social
Processes
• Anticipating realities
about the organization
and the new job
• Anticipating organization’s
need for one’s skills
and abilities
• Anticipating organization’s
sensitivity to one’s needs
and values
A Model of Organizational
Socialization (cont.)
Phases
2. Encounter
Values, skills and attitudes
start to shift as new recruit
discovers what the
organization is truly like
Perceptual and Social
Processes
• Managing lifestyleversus-work conflicts
• Managing inter-group role
conflicts
• Seeking role definition and
clarity
• Becoming familiar with
task and group dynamics
A Model of Organizational
Socialization (cont.)
Phases
3. Change and acquisition
Recruit masters skills and
roles and adjusts to work
group’s values and norms
Perceptual and Social
Processes
• Competing role demands
are resolved
• Critical tasks are
mastered
• Group norms and values
are internalized
A Model of Organizational Socialization (continued)
Phases
Outsider
1. Anticipatory socialization
2. Encounter
3. Change and acquisition
Behavioural Outcomes
• Performs role assignments
• Remains with organization
• Spontaneously innovates
and co-operates
Socialized
Insider
Affective Outcomes
• Generally satisfied
• Internally motivated to
work
• High job involvement
Mentoring
The process of forming and maintaining an intensive and lasting
developmental relationship between a senior person (the mentor)
and a junior person.
Functions of Mentoring
 Career Functions
- Sponsorship
- Exposure and visibility
- Coaching
- Protection
- Challenging assignments
 Psychosocial Functions
- Role modelling
- Acceptance and confirmation
- Counselling
- Friendship
Phases of the Mentor Relationship
Phase
Definition
Initiation
A period of six months to a year during which time
the relationship gets started and begins to have
importance for both managers.
Cultivation
A period of two to five years during which time the
range of career and psychosocial functions provided
expand to a maximum.
Phases of the Mentor Relationship
(continued)
Phase
Separation
Definition
A period of six months to two years after a significant
change in the structural role relationship and/or in
the emotional experience of the relationship.
Redefinition An indefinite period after the separation phase,
during which time the relationship is ended or takes
on significantly different characteristics, making it a
more peer-like friendship.